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Category > Economics Posted 22 Jun 2017 My Price 4.00

productivity

Suppose that in Enigma, Ohio, Uselets have a productivity of $1,000 and Candus have a

productivity of $5,000 per month.

You can’t tell Uselets from Candus by looking at them or asking them, and it is too

expensive to monitor individual productivity.

Candus, however, have more patience than Uselets. Listening to an hour of dull lectures

is as bad as losing $250 for a Uselet and $100 for a Candu.

There will be a separating equilibrium in which anybody who attends a course of H

hours of lectures is paid $5,000 per month and anybody who does not is paid $1,000 per

month  

Answers

SuperTutor
(15)
Status NEW Posted 22 Jun 2017 03:06 AM My Price 4.00

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